Privacy Issues Down Under 23/08/00 Proposed amendments in Australia to the federal privacy legislation to cover the private sector has meant the market research industry is looking again at how the emerging business environment is changing. To gain a clearer understanding of respondent perception of privacy issues the MRSA commissioned research in June 2000. This was sponsored and conducted by ACNielsen at the end of June, based on 1,063 face to face omnibus interviews. The findings of this research revealed: Only 30% of respondents who answer market research surveys will agree to have their details passed on to the sponsors of surveys for direct marketing purposes. 65% of consumers will refuse permission with full knowledge of how the data will be used. If permission is not sought and individuals' details are passed on for database and direct marketing activity, the potential negative consequences are significant if the individual makes the connection between the survey and the direct sales outcome. 81% of people see these organisations as 'customer unfriendly'. As many as 55% see such an initiative as very customer unfriendly (the highest point on the 4 point customer friendly scale). Potential bottom line implications were also explored. People were asked if their intentions to buy further products from that organisation would change if they were aware of this practice. Around 6 in 10 indicate that this would decrease their likelihood of buying further products and services from that organisation. It is clear, from this survey, that businesses will jeopardise their customer relations if they do not ask permission but use data collected under the guise of research for direct marketing activities. According to Liane Ringham, MRSA National Chairman, "Knowledge and consent are central to good market research and make good business sense. It is essential to make a clear distinction between your research and databasing activities. Falling foul of this will risk customer relationships and business outcomes." With this in mind the MRSA will be issuing guidelines for organisations involved in both database activity and market research. The guidelines will make clear what should be said in a market research survey at the outset to be consistent with the new privacy guidelines and how distinctions must be drawn between database activity and market research.